United States v. James Michael Cogley and The Ohio Estate Group, Inc., CR2-00-27 (S.D. Ohio 1999)

James Michael Cogley Sentenced

The U.S. Securities and Exchange Commission ("Commission") and the U.S. Attorneys' Office for the Southern District of Ohio announced that on August 9, 2000, James Michael Cogley ("Cogley") was sentenced to 57 months imprisonment for one count of mail fraud. He also received 3 years supervised probation and a special assessment of $100. Cogley and The Ohio Estate Group ("OEG"), a company Cogley controlled, were also ordered to pay restitution in the amount of $2,751,828. The criminal action arose out of the Commission's civil action brought against Cogley and OEG, which enjoined them from violating the anti-fraud provisions of the federal securities laws. Cogley, a registered investment adviser, received approximately $2,751,828 from 83 investors, primarily elderly and retired persons, for the purpose of investing in real estate development. The money was ultimately used instead for office rent, payroll, business and personal expenses. Only $547,000 was invested in real estate development. In pronouncing the sentence, U.S. Judge for the Southern District of Ohio, the Honorable Edmund A. Sargus Jr. said, " You have caused enormous harm. I find this conduct despicable." Cogley was denied self-surrender and was immediately taken into custody to begin serving his sentence.

On November 29, 1999, Cogley consented to the entry of an Order of Permanent Injunction enjoining Cogley and OEG from engaging in violations of Section 17(a) of the Securities Act of 1933, Sections 10(b), 15(a) (1) and 15 (c)(1) of the Securities and Exchange Act of 1934, Rules 10b-5 and 15c1-2 promulgated thereunder and Sections 206(1) and (2) of the Investment Advisors Act of 1940. Also, on August 10, 2000, Cogley consented to the entry of an Administrative Order Instituting Proceedings, Making Findings and Imposing Remedial Sanctions barring him from association with any broker, dealer or investment adviser.